Judge orders Trump to testify in New York civil-fraud probe

A NY judge rules Donald Trump and two of his adult children must testify under oath as part of an investigation into the former president and his company.

A US judge ruled that former president Donald Trump must testify under oath in New York's civil probe into alleged fraudulent business practices at his family business. State judge Arthur Engoron ordered Trump and his two eldest children, Donald Jr and Ivanka, to comply with subpoenas issued by New York Attorney General Letitia James.

A New York state judge ruled that Donald Trump and two of his adult children must testify under oath as part of the New York attorney general’s investigation into the former president and his company.

The ruling comes in a dispute over three civil subpoenas sent in December by the office of New York Attorney General Letitia James to Mr. Trump and two of his adult children, Ivanka Trump and Donald Trump Jr., as part of a probe into Mr. Trump and the Trump Organization. The subpoenas sought the testimony of all three Trumps, as well as documents from the elder Mr. Trump.

Ms. James’s office had asked state Supreme Court Justice Arthur Engoron to order the Trumps to comply with the subpoenas, saying it had uncovered evidence during its nearly three-year investigation that Mr. Trump and his company falsely valued assets to obtain loans, insurance coverage and tax deductions.

The Trumps disputed the allegations and accused Ms. James of political motivations. They asked the judge to block the subpoenas or delay them until a separate criminal probe by the Manhattan district attorney has concluded.

Justice Engoron ordered the Trumps to appear for depositions within three weeks. He ordered Mr. Trump to hand over documents within two weeks.

In his ruling, the judge rejected the Trumps’ argument that the subpoenas would be used to improperly gather evidence for the criminal investigation, and said the probe was spurred not by campaign promises, but by previous congressional testimony from former Trump lawyer Michael Cohen.

Ivanka Trump and Donald Trump Jr. (L) make their way to board Air Force One with Donald Trump before departing from Dobbins Air Reserve Base in Marietta, Georgia last year.

“A State Attorney General commences investigating a business entity, uncovers copious evidence of possible financial fraud, and wants to question, under oath, several of the entities’ principals, including its namesake,” Justice Engoron wrote. “She has the clear right to do so.” A lawyer for Ivanka Trump and Donald Trump Jr. said they would likely appeal. Lawyers for the former president didn’t immediately respond to requests for comment.

“Today, justice prevailed,” Ms. James said in a statement, adding, “No one is above the law.” During oral arguments earlier Thursday, the judge said he was trying to ignore that one of the subpoenas was directed to the former president of the United States. “To me, he’s a citizen,” said Justice Engoron. “He’s a respondent.” The judge suggested any of the Trumps could just decline to answer questions if called in for a deposition. “Doesn’t that give them all the protection that the law provides?” he asked.

If Mr. Trump didn’t answer questions during a deposition, it could hurt him in a potential criminal case, said Trump lawyer Ronald Fischetti. “It’ll be on every front page of the newspaper in the world, and how can I possibly pick a jury in that case?” he told the judge.

Alan Futerfas, a lawyer for Ivanka Trump and Donald Trump Jr., argued Ms. James, a Democrat, was motivated by politics and said the information gained from the former Republican president’s testimony could be improperly used in the criminal probe. “This is not the typical parallel investigation,” Mr. Futerfas said.

Alina Habba, another of Mr. Trump’s lawyers, said Ms. James had engaged in prosecutorial misconduct by publicly calling Mr. Trump an “illegitimate president.” “If you and I behaved how she behaved, we would be thrown before the ethics committee,” Ms. Habba said.

Justice Engoron asked Kevin Wallace, a lawyer for the attorney general, about Ms. James’s repeated claims that she would pursue Mr. Trump. “It’s a whole circus,” the judge said.

Mr. Wallace said the office, under prior attorneys general, previously pursued cases against Mr. Trump and his business, including before he became president. He described Mr. Trump as a “recidivist” and said it was reasonable to investigate additional conduct.

The New York attorney general’s probe began in March 2019, after Mr. Cohen testified before Congress that Mr. Trump inflated assets for loan and insurance purposes, while deflating assets to reduce real estate taxes. Mr. Trump has said Mr. Cohen is unreliable and that the probes are motivated by politics. Earlier this month, Mazars USA LLP, the Trump Organization’s longtime accounting firm, said that it could no longer stand by the financial statements it prepared, and would withdraw from its work for the company.

The Wall Street Journal